ARYAN BANK LTD Vs. STATE

JUDGEMENT

(1.) This is an application by the present Court Liquidator attached to the High Court at Calcutta for an order or direction whether the security is to be furnished by him and if so, for fixing the amount of such security and in case security is to be furnished, then he asks leave to be granted to pay the annual premium and the surcharge premium payable to the Insurance Co. in respect of such security out of the funds lying in the separate interest cash account of the different banks in his charge.

(2.) The previous Court Liquidator was asked to furnish security by this Court for the sum of Rs. 2,00,000. The Court made such order following the previous practice when liquidators were private liquidators or Official Receiver appointed as liquidators by the orders of Court in specific cases.

(3.) That practice however now requires to be reviewed in the light of the new Companies Act, 1956, and the Banking Companies Act. The legal situation has now considerably changed. The question is also an important one from the point of view of administration.